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We are being released from a project due to health conditions -- Is there a release document we can order?

We are being released from a project that we have been on for a long time. There are multiple issues with this project and due to health conditions the bonding company that took over the original contract is pulling of the job. They are releasing us as the sub contractor. We are waiting a release of lien or something that releases us from every imaginable and unimaginable scenario. Can zlien help us with that or is there anything you can suggest?

9 replies

May 11, 2018

I'm sorry to hear about that. First, a lien waiver may be appropriate here - but not necessarily for the reason indicated above. When a party leaves a job for good, a lien waiver may be requested by their client in exchange for final payment. Sending the appropriate lien waiver (more on that idea, here: Construction Payment: Should You Sign That Lien Waiver?) will help get any lingering payment issues squared away and speed up the receipt of any outstanding payment. However, as a part of the closeout process when the project has not actually been completed, it would be wise to obtain some other assurance, as you'd mentioned above, to ward off potential issues and unforeseen liability. To do this, a party leaving the job might first get their release or termination in writing. Such a writing should be signed by both parties and should attest to of the release from the subcontract, the date of that release, and the terms/conditions of the release. If disputes erupt after a subcontractor leaves the job, this documentation could be invaluable in staving off liability. As far as specific documentation that might be utilized, requesting that a release from liability be signed or that a termination and release be executed with language relieving liability might be options. There are a number of sites that might have helpful resources for documents like these, such as avvo.com, rocket lawyer, or legal zoom might be a good place to start.

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